Module 7 Assignment 1: Decision Support Paper
B7783 - Solution-Oriented Decisions Models
Product and the Markets of Japan and India
The current state of the art in the technology being reported on meeting the needs of the target consumer, marketing can be broken down into the elements of product, price, place, and promotion (Perreault, Cannon, & McCarthy, 2008) where the P of product refers to a physical good or service. When offering details for the P of product, the marketer must consider features, benefits, quality, branding, and packaging (Mullins & Walker, 2010; Perreault, Cannon, & McCarthy, 2008). For the brand looking to expand into global and international markets, the marketer needs to consider the cultural needs of the consumer, the local environment, as well as what the consumer can afford when exploring when to standardize and when to customize product features for a market (Holden, 2005; Mahajan, Banga, & Gunther, 2006). While standardization allows the brand to maintain a strong global identity, appeal to the global consumer, and retain production efficiencies (Chandra,Rau, &Ryans, Jr.,2002) as highlighted below there are specific concerns in both the Indian and Japanese markets that limit the ability of a brand to standardize its product offerings when entering these markets. Javalgi, Granot, and Brashear Alejandro (2011) offered the view that considerable time must be invested getting to know the consumer in markets like Japan and India before introducing a new product; with the advice of these authors in mind, the markets of India and Japan were selected for this discussion paper.
The vendors of such data is validated via technology through Japan and India Quality.
When a global brand examines the Japanese market, the first product related consideration needs to be quality. Melville (1999) observed that the most important consideration for the company considering entry into the Japanese market is quality. Czinkota and Kotabe (1999) detailed that outside the complex Japanese way of doing business, the high quality standards of Japanese consumers presented a significant barrier to entry for global brands. The quality standards are both the result of government regulations and Japanese consumer demand. In examining the Ben & Jerry’s brand’s plan to enter the Japanese ice cream market, the existing quality of the product made alteration of the base recipe unnecessary (Hagen, 2000). With an industry high percentage of butter fat in the product, a brand mission committed to producing the highest quality product, and a scoop shop reputation that communicated quality to the consumer, Ben & Jerry’s sold a product in the United States that did not need to improve its quality to meet the needs of the Japanese consumer (Hagen, 2000).
Packaging/Product Design. Steil, Victor, and Nelson (2002) related the Japanese quality standards as a drive for innovation, with the country implementing a national innovation system. Aiello et al. (2009) also found that consumers around the world rated Japanese brands high on innovativeness. If quality is the cornerstone of product features desired by the Japanese, innovation falls a close second. Along these lines, Melville (1999) observed that for the company exploring entry into the Japanese market, unique and different was the call of the consumer; the Japanese customer expected customization, not standardization of products found elsewhere.
When exploring Ben & Jerry’s entry into the Japanese Market (Hagen, 2000), because the Japanese consumer was not traditionally a large consumer of dairy products, the ice cream was seen as unique in the marketplace and no product modifications were needed to communicate innovation or uniqueness. While US competitor Haagen-Dazs was also present in the Japanese market, their product was smooth and creamy compared to the more unique Ben...
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Goddard, C. (Ed.) (2010, October 20). Opportunity knocks. The Economist Intelligence Unit Limited: Business India Intelligence, 17 (19), 1.
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Javalgi, R., Granot, E., & Brashear Alejandro, T. G. (2011). Qualitative methods in international sales research: Cross-cultural considerations. Journal of Personal Selling & Sales Management, 31 (2), 157-170.
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Melville, I. (1999). Marketing in Japan. Woburn, MA: Butterworth-Heinemann. Retrieved from http://common.books24x7.com.dml.regis.edu/book/id_28129/book.aspx
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